A nearshore contract manufacturer offers companies many benefits when considering expanding manufacturing capabilities. Many foreign companies are attracted to a nearshore expansion in Mexico rather than offshoring due to both cost effective labor and overall manufacturing capabilities that easily enhance production and the business marketplace.
Here are just some of the reasons for making a nearshore choice for expansion.
Reason One: Convenient Location
Nearshore outsourcing is somewhat similar to offshoring, with one big difference. The business is outsourced to a location that is highly convenient, only a few hours away from a company’s headquarters. Operating in similar time zones is also both more convenient and less confusing for scheduling.
Reason Two: More Easily Accessed Information
Nearshoring offers another key advantage to offshoring: a typically easier and better exchange of information. This is due not just because of a convenient location, but also because the location likely provides a closer cultural similarity between the manufacturing company and its new service provider.
Reason Three: Safety for Intellectual Property
Safety for your intellectual property is a concern for any foreign manufacturer. But in Mexico, the short answer is that your intellectual property is safe. Laws and trade regulations differ between countries of course, but while issues have arisen in China recently, when an American company nearshores in Mexico, proper protection is in place.
In fact, intellectual property protection for those manufacturing in Mexico has strengthened, because of increased commitments as cited in the USMCA, the United States–Mexico–Canada Agreement for free trade. This security is vital, because companies who have intellectual property to protect are what supports some 38 percent of the American gross domestic product.
This 2020 trade agreement between the United States, Mexico, and Canada updated regulations to provide everything that’s necessary in today’s manufacturing environment, including enforcing copyright, trademarks, trade secrets, and establishing the proper ways to ensure protection with reassurances about how long those protections last.
Reason Four: An Excellent Labor Force
Offering skilled, effective, and well-trained labor resources is imperative for any company considering either nearshore or offshore manufacturing options. In Mexico, labor is both cost-effective and capable, ready to take on manufacturing projects in a heartbeat.
Reason Five: Overall Manufacturing Capabilities
Nearshore manufacturing allows companies to inspect and visit manufacturing facilities with ease. And, outsourced nearshore manufacturing in Mexico provides a wide range of established manufacturing facilities to enhance production and your place in the business marketplace.
Reason Six: Faster and More Reliable Delivery
Moving manufacturing operations to a nearshoring partner reduces many supply chain issues, resulting in more efficient, cheaper, and faster delivery, a reduced cost of production, and shorter lead times. Transportation expenses are also reduced.
If you would like to find out more about nearshore manufacturing in Tijuana, or get started with this type of program, then here at Coastline International, we can help. We specialize in the nearshore manufacturing of medical devices and electronics and also have skilled expertise in the aerospace and consumer goods sectors. Contact Coastline International today!